A individual contractor do civil contruction work in a manufacturing comapany. company itself provide materials to contractor. contractor provides only labours and charged from company as per man working day/per sq. feet of work done etc. for construction/ dimenting. now contractor has crossed the 10 lacs. therefore he requires to get himself regitered. my query is that contractor is fall which category of service tax & whether company is also liable to pay any amount. please also tell me that whether company is liable to pay service tax on amount more than 10 lacs only or all contractor bill of the current year.
13 December 2013
1.Pure Labour Contracts are not workjs contract ,the same is covered under manpower supply.In case of Individual service provider and Body corporate service receiver ,25% payable by provider rest 75% payable by receiver. 2.Contractor needs to register under manpower suplly Serviceas if he also provides work contract service thenunder that also. 3.As the contractor has crossed the turnover of 10lakh he shall pay service tax on value of services over and above 10 lakhs.whereas the Manufacturing Company shall pay service tax on all the contract bill of the current year.
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